New York, NY, March 4, 1999 -- SmallCaps Online LLC today published comments on ACTV’s (Nasdaq: IATV) announcement that it has launched HyperTV for the entertainment market. SmallCaps also reiterated its BUY recommendation after raising its 12-month price target range to $14-17 per share. The full text of this report can be accessed at SmallCaps' web site, at www.SmallCapsOnline.com.

"We consider ACTV's launch of its HyperTV to the broader entertainment market an important corporate milestone," commented Jeffrey B. Davis, President of SmallCaps Online LLC. "HyperTV has proven itself in the online education market where ACTV is currently generating and growing revenues. We believe all the corporate merger and partnering in the 'convergence' space reflects the importance that entertainment companies, in the broadest definition, are placing on the convergence of the broadband cable television and Internet infrastructures. HyperTV enables this convergence today, and we believe this patented software technology will be instrumental in some very innovative programming, e-commerce and interactive advertising strategies."

Excerpts from the SmallCaps report follow:

ACTV announced the introduction of HyperTV for the entertainment market this week at two industry conferences. We believe ACTV’s patented HyperTV software application will be a "killer ap" for the converged broadband cable TV and Internet infrastructure, and has broad applications in the areas of entertainment, advertising and e-commerce. ACTV has proven the HyperTV software application in the online education market, and is currently generating revenues and repeat business in that sector.

HyperTV is a patented, innovative software application that enables the convergence of the broadband cable TV and Internet infrastructures today. HyperTV enables television programmers and advertisers to seamlessly integrate Internet content and chat functionality into a video program — simultaneously and in real time. Using ACTV’s patented software, programmers can "push" Internet URLs (uniform resource locators) and chat functionality to viewers/users, enabling an enriched interactive TV/Internet experience. This functionality enables programmers to enrich the entertainment experience by providing additional information, chatting, playing games, etc. — all in reference to the program they are watching. More importantly, HyperTV also enables interactive and highly targeted advertising and integrated e-commerce applications.

We are reiterating our BUY recommendation on ACTV, and raising our target 12-month price range to $14 to $17 per share. We will revisit our earnings model from the December 15, 1998, report as the Company moves ahead aggressively in the promotion, licensing and commercialization of HyperTV.

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SmallCaps Online LLC is focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive financial services, including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services to emerging growth companies.

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The information in this press release has been obtained from sources that SmallCaps Online LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation by SmallCaps Online LLC for the purchase or sale of any securities. SmallCaps Online LLC has performed investment banking, consulting or other services for or may solicit investment banking, consulting or other business from, ACTV. SmallCaps Online LLC or persons associated with SmallCaps Online LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the SmallCaps Online LLC web site at www.SmallCapsOnline.com. This material, or any portion thereof, may not be reproduced without prior permission from SmallCaps Online LLC. SmallCaps Online LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering or alteration. Copyright 1999 by SmallCaps Online LLC. All rights reserved.